PLUS received’t be offered, bids not engaging sufficient, says Tun M – concessionaire to get 20-year extension

Prime minister Tun Dr Mahathir Mohamed has confirmed that the government will not be selling PLUS, and says the choice to not achieve this is as a result of not one of the bids which have been made are engaging sufficient, The Star studies.

“We’ve studied all of the bids made by the non-public sector, and likewise the bid by Khazanah Nasional. We determined that one of the best ways is to not promote PLUS to anyone, however to maintain it with Khazanah Nasional and Staff Provident Fund (EPF),” he stated.

He added that PLUS will likely be given a 20-year extension of its toll concession, however the deliberate 18% reduction in the toll rate – as decided throughout Budget 2020 – can be applied, and the concessionaire wouldn’t be making that a lot regardless of the 2 decade extension.

“They’ve to cut back the toll fee by 18%, however bear in mind, 18% is about at as we speak’s fee. Which means, in 20 years’ time, the 18% compared with the ringgit fee then won’t be very excessive. Site visitors will enhance, however the worth and buying energy of the ringgit will go down, so what they earn afterwards (in 20 years) shouldn’t be as large as folks suppose they will get. It’s because we’re it at this time fee, and it will likely be a flat fee minus 18%,” he stated.

The nation’s sovereign wealth fund Khazanah, by way of UEM Group, owns 51% of PLUS, with EPF holding the remaining 49%. Highways operated by PLUS, which is the nation’s largest freeway concessionaire, are the North-South Expressway (NSE), Second Hyperlink Expressway, Penang Bridge, North-South Expressway Central Hyperlink, Butterworth-Kulim Expressway and Seremban-Port Dickson Freeway.

The federal government acquired four offers final yr for the takeover of PLUS, these being from Widad Group, Maju Holdings, RRJ Capital and Tan Sri Halim Saad’s car Karongsa Private Capital.

There was no point out of the proposed takeover of four Klang Valley highways operated by Gamuda. Earlier, it was reported that the federal government had not decided but on the matter. The highways operated by Gamuda are the Lebuhraya Damansara Puchong (LDP), Sistem Penyuraian Trafik KL Barat (Dash), Lebuhraya Shah Alam (Kesas) and the Good Tunnel.

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